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HCDA hears financial and management update for Honua Paha senior housing; MDI deliverables not received
Summary
HCDA staff reported a 2025 net loss of $338,000 for the Honua Paha senior rental project and accounts receivable of $309,000; 24 vacant units remained as of Dec. 31. HCDA said Mark Development Incorporated has not supplied five requested deliverables and staff will return with recommendations in March.
HCDA received an update Feb. 4 on the Honua Paha senior rental housing project, a property at 545 Queen Street in Kakaako. Garrett Sasaki, HCDA chief financial officer, presented calendar‑year 2025 financial results and an update on the property manager's contracted deliverables.
Sasaki said the property’s 2025 financial statements show a net loss of $338,000 on an accrual basis and an accounts‑receivable balance of $309,000. He told the board there were 24 vacant units as of Dec. 31, and that nearly all of those units were rent‑ready since that date but had not yet been filled.
"There is a net loss of 338,000, but the accounting is accrual basis," Sasaki said, and added that a ground lease payment was deferred and recorded as a payable. He also noted the accounts‑receivable balance as "309,000" and said that amount is "a pretty high balance" staff must work to reduce.
Sasaki reviewed five deliverables HCDA previously requested from Mark Development Incorporated (MDI) under its management agreement: a schedule of 2025 receipts reconciling to rental income, a corrected accounts‑receivable report, tenant letters dated Jan. 6 for delinquent balances, internal application and move‑in processes, and a list of applicants ready to move in. He told the board HCDA has not yet received any of those items and that staff plans to bring a recommendation to the board in March on how to proceed with the property.
Board members questioned operational oversight and on‑site presence. Staff said MDI provides a single on‑site security person (4 p.m.–2 a.m.) and that a business‑hours manager is assigned for Monday–Friday day hours to perform routine tasks including annual renewals and unit inspections.
No formal enforcement action was recorded in the Feb. 4 minutes; HCDA said staff will return with recommended next steps at the March meeting.
